WALL STREET PANIC.

Gisborne Times, Volume XXV, Issue 2222, 28 October 1907, Page 3

WALL STREET PANIC.

SITUATION MORE HOPEFUL. United Press Association—Copyright NEW TURK, Oct. 20. The tight money market in New York yesterday caused a paralysis ot tlio f oreign isxcliange market. The situation as regards tho Trust Company or America has been met. It is expected tlio Knickerbocker Trust will shortly resume. The Hamilton Bank, New York, with £I,4UU,UUO of deposits, and tho Twelfth Ward Bank, have suspended, owing to lack of ready cash, but it is stated the banks’ affairs bavo been examined, and it was found that both were solvent; also the Empire City Savings Bank, which availed itself ol the 3U days’ clause to save a run. The Nevada State Bank at Carson City has suspended. The bouthern Steel Company, Birmingham, Alabama, with live millions sterling of capital, failed. Wail Street was cheerful at the outset, but the forced liquidation oi some mocks ied to a slump. Eatei there was a sngiit runy in the general position, and in the evening a distinctly more hopeful reeling. Mr. Kockeieller deposited with the Union Trust Company two million pounds sterling to aid them or to afrord relief generally. Mr. Pierpont Morgan sent- to the Stock Exchange just before tho close lor the day five million pounds, to lend at lu per centum. Tho effect was magical. Brokers scrambled for the money. ■ The scene was the wildest of the year. • Some stocks instantly rose from four to six points. When call money was at 100 per cent, and brokers despairingly sacrificed stocks at any price, Mr. Morgan’s dramatic offer induced a striking rally. , . Mr. Morgan was loudly cheered, also Mr. Rockefeller, who visited Wall Street for the first time for many years. The superintendent of New York banks declared that tho institutions were solvent, if rasli and unreasonable depositors do not endanger the situation. • Tliero is a calmer feeling m New York, though some smaller concerns have suspended payment. LONDON, Oct. 20. The Bankers’ Magazine states that 387 representative securities on’ the London Stock Exchange declined 26 millions, including 14 millions of mining shares, owing to the slump in 'copper. The Times’ Neiv York correspondent says the entire country is enjoying unexampled prosperity. Business -is good, yet lack of confidence in industrial and financial pilots brings disaster. (Received 4.17 p.m., Oct. 27.) NEW YORK, Oct. 26. Mr. Pierpont Morgan and associates have made additional loans to stockbrokers at 20 per cent. The runs are subsiding, and the safest banks, such as the Union, Dime Savings Bank, and Now York, with six millions sterling deposits, insist on the precaution of 60 days’ notice of withdrawals. Mr. Cortelyou. secretary of tho Treasury, lias’ distributed amongst the banks a further sum of eight million dollars. . . , „ A receiver has been appointed for tlio Ivnickerbocker Trust, but mans are in progress for tho rehabilitation of tho institute. , , Mi’. Morgan declares that tho situation generally has improved and tho battlo practically won. The Williamsburg Trust Company, Brooklyn, with a million and a halt sterling of deposits, was tho first national bank in Brooklyn suspended. (Received 4.43 p.m., Oct. 20 The scarcity of money in New Xork is now the greatest difficulty, of the situation. Tho efforts of Mr. Cortelyou, Mr. Pierpont Morgan, and Mr. Rockefeller only slightly relieved the strain. It is suggested that clearing lions© certificates be issued as ill !»•«, and it is also proposed to import five millions in gold from Europe.